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Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to trade lower this week amid a technical correction, ranging between 3,800 ringgit and 3,950 ringgit per tonne, according to Interband Group's senior palm oil trader Jim Teh.
He explained that this is due to July 2025 palm oil stocks climbing to their highest level in 19 months at 2.1 million tonnes, alongside a recent price rally driven by speculative buying from investors.
He added: "As for actual demand, it will continue to come from China, Pakistan, Middle Eastern countries and the European Union. Meanwhile, India is buying cautiously and is unlikely to import much from us, as it is currently diversifying its purchases towards other oils."
Meanwhile, another trader, David Ng, said the palm oil market is expected to trade in a downward direction next week given the recent rise in prices, which could discourage buyers from purchasing.
He added: "We expect prices to trade between 4,300 and 4,450 ringgit per tonne."
On the other hand, Palm Oil Analytics co-founder and senior analyst Sathia Varqa pointed out that sentiment could turn positive in the crude palm oil market, with buying picking up pace during Friday's second session, driven by strong August export data.
He said cargo surveyor Intertek Testing Services (ITS) reported that exports for the first half of the month rose by 16%, while data from AmSpec showed a 21% increase compared with the same period in July.
He added: "Next week the market will focus on production data for the period from 1 to 20 August."
On a weekly basis, the August contract rose by 124 ringgit to reach 4,338 ringgit per tonne, while the September 2025 contract gained 191 ringgit to close at 4,425 ringgit per tonne, and the October 2025 contract jumped 227 ringgit to 4,427 ringgit per tonne.
The November 2025 contract also advanced 237 ringgit to reach 4,511 ringgit per tonne, the December 2025 contract rose 244 ringgit to 4,528 ringgit per tonne, while the January 2026 contract climbed 237 ringgit to reach 4,526 ringgit per tonne.
Weekly trading volume rose to 472,033 lots compared with 354,336 lots the previous week, while open interest fell to 249,718 contracts from 311,976 contracts.
The spot price for August-delivery crude palm oil (CPO) in southern Malaysia rose by 150 ringgit to reach 4,400 ringgit per tonne.
Source: Bernama